2018 Year-End Filing Requirements for Class 4 and Class 3B

Summary

This is a filing requirements form issued by the Bermuda Monetary Authority setting out what Class 4 and Class 3B (re)insurers must submit to the Authority for the 2018 financial year end, plus a list of changes made to the 2018 BSCR model compared to 2017. It consolidates statutory and regulatory filing obligations already in the Insurance Act 1978 and related Rules into a single checklist.

• Statutory Financial Return (SFR): Insurer Information Sheet, auditor's report, Statutory Financial Statements (Forms 1SFS, 2SFS, 8SFS with notes) and Statutory Declaration of Compliance, filed within four months of year end (extendable to seven months on application).
• Capital and Solvency Return (CSR): Includes the BSCR and Schedules, CISSA, Catastrophe Risk Return, loss triangles, eligible capital, FCR and loss reserve specialist opinion; filed within four months of year end (extendable to seven months); declaration signed by two directors and the CRO or CFO.
• Financial Condition Report (FCR): Must be signed by the CEO and a relevant senior executive, and published on the insurer's website within 14 days of filing, or furnished to the public within 10 days of a written request if no website exists.
• Audited financial statements: Separate GAAP or IFRS financial statements (with notes and auditor's report) filed within four months of year end (extendable to seven months); the Authority will publish these once filed.
• Quarterly financial returns: Insurers not part of a group for which the Authority is group supervisor must file quarterly unaudited financial statements and intra-group/exposure disclosures by the last day of May, August and November each year.
• Alternative capital: Insurers with alternative capital arrangements (e.g. cat bonds, sidecars, ILWs) must complete and attach the Alternative Capital Schedule to the BSCR model.
• 2018 BSCR model changes: Additional AML questions on the Information Sheet, removal of a duplicative Form 1SFS note, updated stress/scenario tests (including a new extreme yield curve widening scenario, liability loss accumulation stress, and revised cyber risk schedule), and additional beneficial ownership disclosure for segregated accounts.

For 2018 year end only, insurers are not required to calculate the BSCR under the revised 2019 methodology, though they may elect to do so using the schedules provided.

Key obligations

• File the Statutory Financial Return within four months after financial year end, or up to seven months if extended by the Authority on application
• File the Capital and Solvency Return (including BSCR, CISSA, Catastrophe Risk Return, loss triangles, eligible capital schedule and FCR) within four months after financial year end, or up to seven months if extended
• Ensure the CSR declaration is signed by two directors (one of whom may be the CEO) and either the chief risk officer or chief financial officer
• Ensure the Financial Condition Report is signed by the chief executive and a senior executive responsible for actuarial, risk management, internal audit or compliance
• Publish the Financial Condition Report on the insurer's website within 14 days of filing it with the Authority, or if no website exists, furnish a copy to the public within 10 days of a written request
• File audited financial statements prepared under IFRS or recognised GAAP within four months after financial year end, or up to seven months if extended
• File quarterly financial returns (unaudited financial statements plus intra-group and counterparty exposure disclosures) by the last day of May, August and November each year, unless part of a group for which the Authority is group supervisor
• Complete and attach the Alternative Capital Schedule to the BSCR model if the insurer has alternative capital arrangements

Applies to

Class 4 insurers, Class 3B insurers, (re)insurers

Deadlines

• within four months after the end of the financial year (extendable up to seven months on application): Deadline for filing the Statutory Financial Return, Capital and Solvency Return, and audited financial statements
• within 14 days of the date the FCR was filed with the Authority: Deadline to publish the Financial Condition Report on the insurer's website
• within 10 days of receipt of a written request: Deadline to furnish a copy of the latest financial condition report to the public if the insurer has no website
• last day of May, August and November of every year: Deadline for filing quarterly financial returns